A company has two departments, A and B, that incur delivery expenses. An analysis of the total delivery expense of $9,000 indicates that Dept. A had a direct expense of $1,000 for deliveries. None of the $9,000 is a direct expense to Dept. B. The analysis also indicates that 60% of regular delivery requests originate in Dept. A and 40% in Dept. B. The delivery expenses that should be charged to Dept. A and Dept. B, respectively, are:
Can someone PLEASE do this problem in under 45 minutes for me or EXPLAIN how to do it...fast I really need to click submit by 40 MINUTES!! I would be so happy thanks best/correct/helpful answer 10 points for you :)
Can someone PLEASE do this problem in under 45 minutes for me or EXPLAIN how to do it...fast I really need to click submit by 40 MINUTES!! I would be so happy thanks best/correct/helpful answer 10 points for you :)
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First deduct the 1,000 from the equation its a direct expense only for dept A
Then take the remaining amount of the delivery charges or $8,000 and multiply it by .40...... so .40 x $8,000 gives you the delivery charges that need to be attributed to (Dept B or $3200) and that leaves the remainder of $8,000 or 4,800 to be attributed to Dept A plus the $!,000 that was a direct expense for them alone or ($5,800 of the delivery charges attributed to Dept A)
A=$5,800 and B = $3,200 Good Luck!
Dominic didn't deduct the $1,000 that was attributed only to Department A first.
Then take the remaining amount of the delivery charges or $8,000 and multiply it by .40...... so .40 x $8,000 gives you the delivery charges that need to be attributed to (Dept B or $3200) and that leaves the remainder of $8,000 or 4,800 to be attributed to Dept A plus the $!,000 that was a direct expense for them alone or ($5,800 of the delivery charges attributed to Dept A)
A=$5,800 and B = $3,200 Good Luck!
Dominic didn't deduct the $1,000 that was attributed only to Department A first.
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An allocation based on delivery requests would give Dept A $5400 & Dept B $3600